Asian car-maker was supposed to build a $4B plant in the Carolina Core. Its now being sued by the state
The Vietnamese electric-vehicle manufacturer VinFast, once touted as one of the five pillars of the Carolina Core, is being sued by state Attorney General Jeff Jackson for breach of contract.
Jackson's lawsuit was filed Thursday on behalf of the state Commerce Department.
"VinFast agreed to build a factory and create jobs for North Carolinians - it didn't do either," Jackson said.
The Carolina Core is a 150 mile region anchored by Greensboro, Winston-Salem, High Point and Fayetteville.
The other manufacturing pillars of the core are Boom Supersonic and JetZero at Piedmont Triad International Airport, Toyota Battery Manufacturing NC in Liberty and Wolfspeed near Siler City.
Commerce accuses VinFast of failing to fulfill its economic-development agreement to develop a $4 billion electric vehicle and battery manufacturing facility in the Sanford area at Triangle Innovation Point.
Jackson said the state is exercising its contractual right to acquire the property, "thereby protecting taxpayer investments while preserving the site for future economic-development opportunities."
North Carolina's decades-long quest for an operational automobile manufacturer appeared to have been met with great fanfare in March 2022 when VinFast Auto Ltd. projected starting production in July 2024.
VinFast said it would begin production with a seven-passenger full-size SUV and a five-passenger mid-sized model, along with electric battery components at the plant. The goal was to make about 150,000 vehicles annually in Phase 1 and about 200,000 annually at full production.
It pledged to create 1,750 jobs by the end of 2026 and have 7,500 jobs at full production.
To fully qualify, VinFast would be required to create between 6,000 and 7,500 jobs by 2027 at an annual average wage of $51,096.
However, in July 2024, VinFast reported the start of production would be delayed until at least 2028.
"This decision will allow the company to optimize its capital allocation and manage its short-term spending more effectively, focusing more resources on supporting near-term growth targets and strengthening existing operations," VinFast said in a July 2024 news release.
However, little progress has been made by the manufacturer since.
Overall, the manufacturer was made eligible for $854 million in incentives from North Carolina, including $402 million from state budget commitments toward site preparations, road improvements, and additional water and sewer infrastructure.
There's also a $50 million pledge from Golden Leaf Foundation and $38 million from the N.C. Community College System for job training.
Chatham County Board of Commissioners pledged $400 million in local incentives for an overall state and local incentive commitment of $1.25 billion.
The N.C. Justice Department notified VinFast in January that it had defaulted on its agreement, and that the state intended to protect its investment by exercising its right to acquire the site.
In response, VinFast claimed it had met its construction deadlines and would have a facility opened on a delayed 2028 timeline.
"North Carolina will always compete aggressively for jobs and investment, but we also protect taxpayers by requiring the company to hold up its end of the deal," Gov. Josh Stein said.
"VinFast has not fulfilled its commitments. Today's action is about protecting taxpayers and getting the Chatham County mega-site back on the market to support future good-paying manufacturing jobs."
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